Welcome to Fiduciary News Trending Topics. Each Monday, we’ll give you a quick synopsis of the major news events and trends impacting ERISA plan sponsors, 401k fiduciaries and those in the business of supporting these fine folks. If you smile when you read these entertaining snippets, well, that’s the idea.

Fiduciary News Lead Story:

“Should Plan Sponsors Fear? Is the 401k Merely a Ponzi Scheme?” (Fiduciary News, February 8, 2011). This is the story you’ve been hearing about. It started with a rather inane comment from a small market radio host and went viral in 24 hours. Too ridiculous to be true? The mass media seems to promote this urban legend. Here’s the truth that busts it.

Fiduciary Standard – Positioning Continues:

Who’s the better fiduciary? Who can best regulate a fiduciary? What is a fiduciary, anyway? The debate continues as if the topic was debatable. What’s clear now is “the fiduciary standard” has become a mere pawn in a larger power struggle that has everything to do with funding, politics and prestige. The client? Don’t be so naïve.

Every once in a while – almost as if it’s on some editorial calendar – we see a week with a series of articles calling into question the sanctity of the 401k plan. Is it the root of all evil – or is it just drawn that way?

“Retirement To Change Drastically, Merrill Says,” (Financial Advisor, February 2, 2011) The good news: older more experienced retirees would encourage today’s workers to start investing for retirement in their early 20’s or 30’s. The bad news: Women are much less confident about securing a good retirement than men. This might be, as the article points out, because women expect to do much more than men in their retirement years. Other than that, it’s tough to find any “drastic” change.
“I know 401k plans aren’t perfect, but a Ponzi scheme?” (Employee Benefit News, February 8, 2011) Here’s a pretty honest piece, inspired by last week’s lead story in Fiduciary News, reflecting surprise at the pervasiveness of this myth.
“Mistiming Retirement,” (Financial Advisor, February 2011) Sometimes, things are just an unfortunate accident of birth. And sometimes they’re an unfortunate accident of bad advice. This is an exhaustive piece and good for the wonk-heads in the audience.

Major Plan Sponsor Moves and News:

What are other plan sponsors and fiduciaries doing with their plans? And how are participants responding? The latest in legal proceedings involving plan sponsors and fiduciaries.

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